A Firm That Follows an Aggressive Working Capital Financing Approach

question 93

True/False

A firm that follows an aggressive working capital financing approach uses primarily short-term credit and thus is more exposed to an unexpected increase in interest rates than is a firm that uses long-term capital and thus follows a conservative financing policy.

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Definitions:

Fundamental

Serving as a foundation or core; of central importance.

Authentic Leadership

A leadership style in which the leader is genuine, transparent, and ethical in their dealings with followers, promoting trust and loyalty.

Intrapersonal

Involves self-awareness and self-expression, including thoughts and feelings within an individual.

Interpersonal

Relates to relationships or communication between people.